Posts Tagged ‘Disney’

Multi-billion dollar, multi-national Amdocs has signed a definitive agreement to acquire media service provider Vubiquity.

The $224 million cash deal has been approved by both the Boards of Directors of Vubiquity and Amdocs, and is expected to close during the second quarter of FY2018.

Amdocs (NASDAQ: DOX) is a provider customer service software to communications and media customers such as OSS (operational support systems) and BSS (business support systems) systems. This acquisition is a significant expansion into the media industry for Amdocs, who did not have a booth at this past IBC and does not have a booth at this upcoming NAB Show (at the time of this writing).

Amdocs had already started to move deeper into the media technology sector with its September 2016 acquisition of Vindicia, a provider of subscription and payment solutions. Vindicia’s payment solutions support several digital offers such as the BBC & iTV Britbox service and NBA League Pass. Amdocs purchased Vindicia for $90M.

This acquisition is a much further move into the media supply chain. Vubiquity is a managed service provider connecting content owners and publishers with video distributors – both traditional PayTV operators and OTT publishers. In its collateral Vubiquity cites relationships with over 650 premium content producers (film studios, television networks, etc …) and over 1,000 global video distributors (PayTV operators, OTT publishers, etc …).

Vubiquity had raised a total of $237.2 million over four rounds of funding between 2007 and 2012. Current private equity owners include Columbia Capital and The Carlyle Group, whom invested $100 million of new funding as part of the Company’s purchase of SeaChange’s On Demand Group in 2012.

A series of M&A transactions built Vubiquity, beginning with the 2009 merger of Avail Media and TVN Entertainment – subsequently “Avail-TVN.” Avail-TVN rebranded as Vubiquity in early 2013.

Later in 2013, Darcy Antonellis, then Warner Bros. CTO, joined Vubiquity as CEO. Darcy’s notable resume also includes two speaking appearances at Devoncroft’s annual Media Technology Business Summit (see photo on left). At the closing of the transaction Darcy will join Amdcos as head of the Amdocs Media Division.

More recent deals for the DETE (Digital-End-to-End) service from the Warner Bros. Technical Operations and Juice Worldwide, a digital supply chain solution company, further expanded Vubiquity’s portfolio.

The press release announcing the transaction states the “impact of the acquisition on Amdocs’ diluted non-GAAP earnings per share is expected to be neutral in fiscal year 2018, and accretive thereafter.” Since this is a cash transaction, it is difficult to derive any meaningful view on deal multiples from that statement. However, Amdocs offered greater detail during its earnings call with analysts.

Tamar Rapaport-Dagim, CFO Amdocs, indicated an expectation of Vubiquity to contribute “approximately $100 million in the first 12 months after closing.” Ms. Rapaport-Dagim continued, “Vubiquity, as you can understand from the message that we think it will be a neutral impact on EPS in fiscal 2018 it’s coming with a low margin to start with. And we believe we can build it up along the time quite quickly, given both the top-line synergies and the cost structure synergies we see in front as opportunities.”

Using expected revenue contribution as a proxy for annual revenue suggests a deal multiple of 2.2x sales.

The stated level of revenue contribution contrasts with several earlier public data points on Vubiquity’s annual sales. At the time of its rebrand, Management gave public guidance of annual revenue in excess of $250 million. Also, the inc5000 lists Vubiquity’s annual revenue in 2013 at $296.8 million. Some caution is appropriate in concluding revenue has meaningfully decreased since Vubiquity’s business model may have passed thru content licensing revenue. Such mechanisms or accounting treatment could result in materially different statements on revenue, depending on the context of the statement.

All communications by Amdocs cited a view of convergence between communications and media & entertainment. “Investing in the growth engines of tomorrow is a core discipline of Amdocs and we see considerable opportunity resulting from the increased convergence of communications with media and entertainment” stated Eli Gelman, CEO Amdocs.

Mr. Gelman provided further commentary on the rationale during Amdocs earnings call with analysts.

“…we see increasing convergence between traditional wireless and Pay TV distributors, content owners and large OTT players. By acquiring Vubiquity, we believe Amdocs will be uniquely positioned to address the requirements of distributors, content owners and web players as the lines between each become increasingly blurred.

Second, media and entertainment companies like Disney, HBO and Time Warner are reaching out directly to the end users with a direct content-to-consumer business model or what is called D2C direct-to-consumer. This trend requires new systems to support an improved customer experience that we believe Amdocs is well-positioned to provide.”

Whether you are a supplier, buyer, or investor in the media technology sector, you won’t want to miss the “Media Technology Business Summit” at the upcoming NAB Show.

Now in its sixth installment at the annual NAB Show, this half day session will take place on Sunday April 23rd from 11am to 3pm in room N249 of the Las Vegas Convention Center. Please make note of the early start time versus last year.

Following the same format as prior years, the Summit will feature executive panel discussions across the entire media value chain. C-level executives from leading broadcasters, service providers, media technology vendors, and IT vendors will offer candid assessments of the business impact of market developments on their business models, operational practices, and strategic decision making.

In addition to a panel of broadcaster Chief Technology Officers (CTOs), we will also have a panel of broadcaster Chief Financial Officers (CFOs) for this year’s Summit. The audience will then have the opportunity to hear from both the technology and financial decision-makers at high-profile broadcasters.

As a complement to the panel discussions and keynote presentations, we will review excerpts from the latest findings of Devoncroft’s Big Broadcast Survey, the industry’s definitive demand-side study of the broadcast and media sector.

The agenda with confirmed speakers is included below. It is also available on the NAB Show website.

This conference is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector. A NAB Show badge is required for admission. If you haven’t registered for the NAB Show, you may use the guest code ATT2 (link to registration) to receive a Free Exhibits Pass.

Approximately 700 executives attended this standing-room only event at the NAB Show 2016. We hope to see you there.

Disney announced a $1 billion acquisition of a minority stake in BAMTech, the entity holding Major League Baseball’s streaming technology and content delivery business. The spin-out of BAMTech from MLB Advanced Media (“MLBAM”) was announced in late 2015. The Disney investment in BAMTech had been rumored for several months.

In its quarterly SEC filing, Disney disclosed it acquired an initial 15% equity position in BAMTech for $450 million. Disney has committed to purchasing an additional 18% equity interest in BAMTech for $557 million in January 2017. Those two investments value BAMTech at $3.05 billion.

Disney declined to provide any specifics on BAMTech’s operating profile, though did note there is “some very slight dilution from the acquisition.” However, Disney’s management felt this was more than offset by the trajectory of BAM Tech’s business and the opportunities to combine with Disney’s content properties, most notably ESPN.

As part of the investment, Disney also gains the right to acquire majority ownership “in the coming years.” The NHL currently holds a 7% – 10% equity position in BAMTech based on the August 2015 partnership deal between the companies.

The announcement coincided with Disney’s fiscal third quarter results. During Disney’s call with analysts, CEO and Chairman Bob Iger, added context on Disney’s diligence of BAMTech.

“I love the business model because I love the quality of what they’ve created, largely from a technology perspective. You’re look at an industry-leading platform. And we did a fair amount of due diligence on this, speaking with people who have been clients of their service. And also, we did our own due diligence in the sense that we’ve been clients of competing services. And we concluded that what they’ve got is really robust” said Mr. Iger.

Since Disney is already a customer of BAM Tech, one immediate question is why Disney thought it was necessary to buy BAM Tech as opposed to renting its services as a customer. During an interview with CNBC, Bob Iger responded to the customer vs. owner question from CNBC host Julia Boorstin.

“First of all, we think it is a good investment. We love their business model. We think that in today’s world having the ability to stream on a scale basis live sports and live programming is a competitive advantage and something that is necessary. We love the user interface. So, overall we look at is as an investment. But as a partner, as a part owner, and ultimately as a majority owner, we feel it gives us an ability to jump start not only ESPN, but are other business as well, into a space that we think is not only very exciting but extremely important in a very dynamic media marketplace. So much better to own than to rent” responded Mr. Iger.

Bloomberg is reporting Disney has agreed to acquire a 33% equity stake in BAM Tech, the recent spin-out of MLB Advanced Media (“MLBAM”), the streaming technology division of Major League Baseball (“MLB”). Forbes is separately reporting the deal is tracking toward completion later this summer.

Disney is reported to be purchasing the 33% equity stake in BAM Tech for $1.16 billion, implying a valuation of $3.5 billion.

As part of the investment, Disney also gains the right to purchase an additional 33% of BAM Tech during the next four years. Should Disney exercise the option, it would become the majority owner of BAM Tech. The NHL currently holds a 7% – 10% equity position in BAM Tech based on the August 2015 partnership deal between the companies.

MLBAM is jointly owned by all 30 MLB franchises, with each holding a 1/30 ownership interest. BAM Tech comprises the technology service business of MLBAM serving third-parties (i.e. not MLB). The August 2015 spin-out of BAM Tech was intended to enable MLBAM to accelerate commercial initiatives with third parties unaffiliated with MLB.

At the 2016 Re/code summit, Bob Bowman, the CEO of MLBAM, said he expects revenue of $1.2 billion to $1.3 billion during 2016 (a substantial increase over 2015 revenue of $800 million). Mr. Bowman also stated a revenue split of 80 / 20 between baseball and third party revenues. Those figures suggest BAM Tech was an approximately $160 million revenue business in 2015 and is set to grow to $240 – $260 million (50+% year-over-year).

Using those revenue estimates for BAM Tech, the Disney investment values the business at an approximate revenue multiple of 14x forward-looking sales (Note: several estimates were used to arrive at that valuation figure). It is unknown whether part of this consideration accounts for the value of the option Disney received, which would allow Disney to gain majority control. All things being equal, purchasing control should come at a premium.

This moderated panel discussion about how evolving business models will drive media technology spending features four top executives: Richard Friedel- EVP and GM FOX NE&O; Håvard Myklebust – CTO of TV2 in Norway; John Honeycutt – CTO of Discovery Communications; and Renu Thomas – EVP Media Operations, Engineering and IT at the Disney/ABC Television Group.

This panel is just one of the sessions in the 2016 Media Technology Business Summit, produced by Devoncroft Partners and the NAB Show.

Designed to be a thought-provoking kickoff to the 2016 NAB Show, this half-day conference examines the “the business of the media business” from the perspective of all levels of the media value chain. It is also an opportunity to network with the media technology executive community ahead of the start of the exhibition.

We are pleased to announce the full agenda and speaker lineup for the fifth annual Media Technology Business Summit at the upcoming 2016 NAB Show.

As a reminder, the Summit starts at 1pm on Sunday April 17th and is located in room N249 of the Las Vegas Convention Center. The event is co-produced by Devoncroft Partners and the organizers of the NAB Show. Admission is available to all NAB Show exhibitors and registered attendees (remember to bring your NAB Show badge).

Designed to be a thought-provoking kickoff to the 2016 NAB Show, this half-day conference examines the “the business of the media business” from the perspective of all levels of the media value chain. It is also an opportunity to network with the media technology executive community ahead of the start of the exhibition.

An overview of the conference is included below. Full details are available on the NAB Show website.

Josh Stinehour of Devoncroft will take the podium for his annual (enthusiastic) presentation on developments in the media technology sector. If you have any final announcements you would like Josh to consider for his presentation, let him know.

1:50pm – Change is the new normal: Transforming for business success in the new Media landscape

As the Media industry undergoes massive transformation, only the strongest or most considered will survive. To win at a time when change is the constant requires technology shifts, operational re-organizations and completely new business models that address the challenges of the new Media landscape of consolidated customers, and ever more fickle consumers.

Ericsson’s SVP and Group CTO, Ulf Ewaldsson, will reflect on how Ericsson’s own transformation, and that of Telecoms and ICT, has parallels with the Media industry, and why Ericsson has invested to become one of the largest global TV & Media providers of products and services. The session will also highlight some of the latest technologies that underpin success, and just how different a business mindset is needed to excel.

CEOs from four leading media technology suppliers will debate the most important commercial issues facing the industry, and discuss their strategies to position their companies for success in a rapidly evolving marketplace. The panelists will also offer opinions on how changes in the business environment are impacting vendors and customers.

Senior technology executives from leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision. The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

A panel of executives from well-known IT vendors operating in the media technology sector will offer the IT community perspective on developments in the media sector. Participants will also share opinions on the implications of broader technology advancements to the sector. In particular the discussion will focus on the role of the IT vendor in the ongoing transition of the media technology sector to take advantage of technologies such as IP and virtualization.

A panel of executives from leading media service providers will discuss views on both technology developments and deployment considerations for media organizations. Discussion topics will include solutions for multi-platform content delivery, the economics of outsourcing, how service providers can leverage their scale to deliver increased performance and agility, and how next-generation data center architecture may impact the media ecosystem.

Amazon Web Services and Elemental leaders discuss the unprecedented impact of the cloud on media and entertainment industry business models. Alex Dunlap, general manager of Amazon CloudFront, and Sam Blackman, CEO and co-founder of Elemental, will share insights about media leaders who are going “all in the cloud”. The session will discuss cutting edge end-to-end media workflows, the advantages of video processing and delivery from the cloud, and how Amazon’s 2015 acquisition of Elemental represents the future of the media industry.

This half-day session was co-produced by Devoncroft Partners, Silverwood Partners, and the organizers of the 2014 NAB Show (to whom both Devoncroft and Silverwood are very grateful).

We had a standing-room only crowd from the moment the doors opened, and attendees were not disappointed by the outstanding information presented on the day. The power of this unique event is that it brings together three ordinarily disparate groups — technology vendors, broadcasters, and financial firms — to discuss and debate important business issues facing the industry at a time of incredibly dynamic change.

We would especially like to thank our speakers and panelists for not only taking times out of their busy lives to prepare for and attend this event, but also (especially) for their thoughtful and often candid assessment of the state of the broadcast industry today, and what the future may bring.

In particular we would like to thank Vince Roberts,EVP Global Operations and Chief Technical Officer of Disney/ABC Television for his outstanding keynote address, which which provided a truly thought-provoking insight into the future of the media industry (and he’s funny too).

In case you missed this event, the full agenda included:

Strategic Industry Analysis: Valuations, M&A, and Equity Financing

Presenters:

Jonathan Hodson-Walker: Managing Partner, Silverwood Partners

Joshua Stinehour: Managing Director, Silverwood Partners

The Broadcast & Media Technology Industry in 2014

Presenter:

Joe Zaller: President, Devoncroft Partners

Business Strategy Perspective From Industry Executives

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists:

Sam Blackman: CEO and Co-founder, Elemental Technologies

Louis Hernandez. Jr.: President and Chief Executive Officer, Avid

Joop Janssen: CEO, EVS

Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

If you are interested how the dramatic changes impacting the broadcast industry may shape its future, you won’t want to miss the third annual NAB Show event co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

Now part of the NAB 2014 Broadcast Management Conference, this half-day session is called “Shifting Media Economics: Impact on Strategy, Finance, and Technology.”

It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

As always, this event features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda offers attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2014 NAB Show.

Highlights will include panel discussions featuring leading vendor CEOs, senior executives from leading broadcasters, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including an updated perspective on transaction activity and valuations, vendor strategic considerations, and the current M&A environment along with near-term expectations.

This panel of recognized executives at leading vendors will offer views on the critical drivers of company valuation in the industry, the best practices the panelist’s have learned on how to evaluate M&A opportunities, and the preferred approach for integrating M&A into overall growth strategies. The panelists will also consider the question of how broader technology trends are impacting the vendor community in the industry.

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists:

Sam Blackman: CEO and Co-founder, Elemental Technologies

Louis Hernandez. Jr.: President and Chief Executive Officer, Avid

Joop Janssen: CEO, EVS

Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

3:35 pm – 3:50 pm

IABM Research Overview

Peter White, Chief Executive of the IABM (the trade group that represents suppliers of broadcast technology worldwide), will present an overview of the latest end-user research from the IABM along with selected excerpts from the recently completed IABM DC Global Market Valuation Report, the industry’s definitive supply-side market report.

Presenter:

Peter White: Chief Executive Officer, IABM

3:50 pm – 4:20 pm

The Broadcast Buyer Perspective on Business Models, Trends, and Technology Advancement

A panel of technology decision makers at leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision. The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

ABC/Disney EVP and CTO Vince Roberts will highlight the major business model challenges facing the industry and the implications to technology development. Mr. Roberts will focus on the actual commercial factors driving technology deployments today, and what can reasonably be expected in the near future. Referencing initiatives at Disney relating to topics such as IP-based infrastructure and the Cloud, the audience will gain an improved understanding of how changes in media consumption and fundamental technology transitions, ultimately affect technology vendors.

4:45 pm – 5:15 pm

Investor Perspectives on Industry

This panel of leading investment professionals in the media and entertainment sector will offer the audience the institutional investor’s perspective on the industry. The discussion will include the panelist’s intelligence-gathering plans for the NAB Show, views on the trends that are driving investment dollars in the sector, and a review of the characteristics influencing the evaluation of an investment opportunity.

If you are interested how the dramatic changes impacting the broadcast industry may shape its future, you won’t want to miss the third annual NAB Show event co-produced by Devoncroft, Silverwood Partners and the organizers of the NAB Show.

Now part of the NAB 2014 Broadcast Management Conference, this half-day session is called “Shifting Media Economics: Impact on Strategy, Finance, and Technology.” It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

It will be held in room N235 of the Las Vegas Convention Center on Sunday April 6th from 1:30 p.m. to 6:00 p.m.

As always, this event features an intensive, information-packed series of presentations and panels that discuss the strategic trends and industry-specific factors influencing the value of media technology companies.

We’ve worked hard to put together an outstanding line-up of speakers and presenters, including top technology buyers, leading technology vendor CEOs, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

The agenda offers attendees the informed opinions of technology purchasers, industry executives, market research organizations, and financial professionals. The event will serve as a thought-provoking kick-off to the 2014 NAB Show.

Highlights will include panel discussions featuring leading vendor CEOs, senior executives from leading broadcasters, and private equity investors who will speak to the opportunities and challenges involved with financing the next phase of technology change in the industry.

Jonathan Hodson-Walker and Joshua Stinehour of Silverwood Partners will present an analysis of strategic industry trends and the specific factors that affect company valuations, including an updated perspective on transaction activity and valuations, vendor strategic considerations, and the current M&A environment along with near-term expectations.

This panel of recognized executives at leading vendors will offer views on the critical drivers of company valuation in the industry, the best practices the panelist’s have learned on how to evaluate M&A opportunities, and the preferred approach for integrating M&A into overall growth strategies. The panelists will also consider the question of how broader technology trends are impacting the vendor community in the industry.

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists

Sam Blackman: CEO and Co-founder, Elemental Technologies

Louis Hernandez. Jr.: President and Chief Executive Officer, Avid

Joop Janssen: CEO, EVS

Michelle Munson: President, CEO and co-founder, Aspera, an IBM company

3:35 pm – 3:50 pm

IABM Research Overview

Peter White, Chief Executive of the IABM (the trade group that represents suppliers of broadcast technology worldwide), will present an overview of the latest end-user research from the IABM along with selected excerpts from the recently completed IABM DC Global Market Valuation Report, the industry’s definitive supply-side market report.

Presenter

Peter White: Chief Executive Officer, IABM

3:50 pm – 4:20 pm

The Broadcast Buyer Perspective on Business Models, Trends, and Technology Advancement

A panel of technology decision makers at leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision. The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

Moderator:

Joe Zaller – President, Devoncroft Partners

Panelists

Phil Braden: SVP Technology and Applications, PCCW Global

Del Parks: SVP Operations & Engineering, Sinclair Broadcast Group

Todd Daly: EVP Operations & Systems Engineering, Fox Broadcasting

Andy Tennant: Technology Director, Studios, ITV

4:20 pm – 4:45 pm

Keynote: Business Model Changes Technology Changes

ABC/Disney EVP and CTO Vince Roberts will highlight the major business model challenges facing the industry and the implications to technology development. Mr. Roberts will focus on the actual commercial factors driving technology deployments today, and what can reasonably be expected in the near future. Referencing initiatives at Disney relating to topics such as IP-based infrastructure and the Cloud, the audience will gain an improved understanding of how changes in media consumption and fundamental technology transitions, ultimately affect technology vendors.

Presenter:

Vince Roberts: CTO and EVP Global Operations, Disney/ABC Television Group

4:45 pm – 5:15 pm

Investor Perspectives on Industry

This panel of leading investment professionals in the media and entertainment sector will offer the audience the institutional investor’s perspective on the industry. The discussion will include the panelist’s intelligence-gathering plans for the NAB Show, views on the trends that are driving investment dollars in the sector, and a review of the characteristics influencing the evaluation of an investment opportunity.